ScanSource (NASDAQ:SCSC) Rating Increased to Strong-Buy at Wall Street Zen

Key Points

• ScanSource has been upgraded to a "Strong Buy" rating by Wall Street Zen and Zacks Research, reflecting positive sentiment among analysts regarding the stock's potential.
• The company's latest earnings report showed an EPS of $1.02, beating expectations and indicating a year-over-year revenue increase of 8.9%.
• Insider trading activity includes significant sales from both the CEO and an executive vice president, highlighting potential changes in confidence among company officials.

Wall Street Zen upgraded shares of ScanSource (NASDAQ:SCSC - Free Report) from a buy rating to a strong-buy rating in a report released on Saturday morning.

Separately, Zacks Research raised shares of ScanSource from a "hold" rating to a "strong-buy" rating in a report on Monday, August 25th. One research analyst has rated the stock with a Strong Buy rating and one has assigned a Buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Strong Buy" and a consensus target price of $42.00.

ScanSource Stock Performance

Shares of ScanSource stock traded up $0.50 on Friday, reaching $44.51. 6,518 shares of the company traded hands, compared to its average volume of 249,246. ScanSource has a 52 week low of $28.75 and a 52 week high of $53.90. The company has a 50 day moving average of $42.45 and a 200 day moving average of $39.22. The firm has a market capitalization of $974.21 million, a PE ratio of 14.79, a PEG ratio of 0.74 and a beta of 1.43. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.01 and a quick ratio of 1.30.

ScanSource (NASDAQ:SCSC - Get Free Report) last released its earnings results on Thursday, August 21st. The industrial products company reported $1.02 earnings per share for the quarter, beating analysts' consensus estimates of $0.91 by $0.11. ScanSource had a net margin of 2.35% and a return on equity of 9.38%. The firm had revenue of $812.89 million during the quarter, compared to the consensus estimate of $776.21 million. During the same period in the prior year, the firm earned $0.80 EPS. The company's revenue was up 8.9% compared to the same quarter last year. ScanSource has set its FY 2026 guidance at EPS. Equities analysts forecast that ScanSource will post 3.33 earnings per share for the current year.

Insiders Place Their Bets

In other ScanSource news, CEO Michael L. Baur sold 47,969 shares of the firm's stock in a transaction on Thursday, September 18th. The shares were sold at an average price of $44.34, for a total value of $2,126,945.46. Following the sale, the chief executive officer owned 202,512 shares of the company's stock, valued at $8,979,382.08. This trade represents a 19.15% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Rachel Hayden sold 752 shares of the firm's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $43.57, for a total transaction of $32,764.64. Following the completion of the sale, the executive vice president directly owned 14,918 shares in the company, valued at approximately $649,977.26. This trade represents a 4.80% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 153,677 shares of company stock worth $6,876,030. Insiders own 4.20% of the company's stock.

Institutional Investors Weigh In On ScanSource

A number of large investors have recently modified their holdings of SCSC. Canada Pension Plan Investment Board bought a new stake in shares of ScanSource during the 2nd quarter valued at about $25,000. Versant Capital Management Inc raised its holdings in shares of ScanSource by 88.4% during the first quarter. Versant Capital Management Inc now owns 863 shares of the industrial products company's stock valued at $29,000 after purchasing an additional 405 shares during the last quarter. GAMMA Investing LLC raised its holdings in shares of ScanSource by 25.5% during the first quarter. GAMMA Investing LLC now owns 1,944 shares of the industrial products company's stock valued at $66,000 after purchasing an additional 395 shares during the last quarter. Point72 Asset Management L.P. purchased a new position in shares of ScanSource during the fourth quarter valued at approximately $81,000. Finally, Osaic Holdings Inc. grew its position in ScanSource by 400.5% during the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the industrial products company's stock valued at $87,000 after buying an additional 1,670 shares during the period. Institutional investors own 97.91% of the company's stock.

ScanSource Company Profile

ScanSource, Inc engages in the distribution of technology products and solutions in the United States, Canada, and Brazil. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies.